Meredith Whitney Adds 10 New States To Her Sh*t List

MDubs has issued a new state budget and debt report and Arizona, Nevada, Connecticut, Wisconsin? Might want to run. (Also, re last year’s prediction on muni bond defaults- she was just ball-parking, no one should’ve taken those numbers at face value.)

Whitney tells Fortune she never meant to make more than a general forecast. “I never intended on framing the scale of defaults as a precise estimate, but I continue to believe that degree of municipal defaults will be borne out over the cycle. I meant to point out that the state debt problem is a massive headwind for the U.S. economy, second in importance only to housing.”

[…]

Whitney’s latest report is even more thorough than last year’s analysis that started the uproar. It covers 25 of the largest states, adding ten new ones to the list, including Arizona, Nevada, Connecticut, and Wisconsin. The problem starts with spending. Since 2003, state governments have raised annual outlays from $1.5 trillion to almost $2.2 trillion, or $700 billion, yet tax receipts have risen only $400 billion or $300 billion less, to $1.4 trillion. In fact, spending kept surging all during the recession, while income from sales, income and corporate taxes went totally flat in 2007.

M-Dubs doesn’t put everyone on notice, however. Whereas Connecticut receives one whip of the cat-o-nine-nails for every dollar over budget, Indiana, which gets a pat on the head and a scratch behind the ears, is dubbed a “model citizen.”

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Wake up people….NJ state revenue for 2010 was over 900 million dollars more than 2009 BUT, the courts decreed WE must spend 550 million on the poor and failing schools of NJ. Laffer Curve — maybe — “At the beginning of a dynasty Taxation Yields a large revenue from a small assesment — At the end of a dynasty Taxation Yields a small revenue from a large assesmnent. Ibn Khaldoun – 14th Century… From Ronald Reagan’s notes……Hoboken Harry

Wake up people….NJ state revenue for 2010 was over 900 million dollars more than 2009 BUT, the courts decreed WE must spend 550 million on the poor and failing schools of NJ. Laffer Curve — maybe — “At the beginning of a dynasty Taxation Yields a large revenue from a small assesment — At the end of a dynasty Taxation Yields a small revenue from a large assesmnent. Ibn Khaldoun – 14th Century… From Ronald Reagan’s notes……Hoboken Harry

Guess you think the state can continue to send your 3 welfare checks for every person paying their taxes??? Only the federal government gets to spend money it doesn’t have. Oh Wait!!! The federal government is ALSO going to have to balance its budget??

Guess you think the state can continue to send your 3 welfare checks for every person paying their taxes??? Only the federal government gets to spend money it doesn’t have. Oh Wait!!! The federal government is ALSO going to have to balance its budget??

“M-Dubs doesn’t put everyone on notice, however. Whereas Connecticut
receives one whip of the cat-o-nine-nails for every dollar over budget,
India, which gets a pat on the head and a scratch behind the ears, is
dubbed a “model citizen.”

Is Meredith Whitney just making these predictions at this point for publicity? She seems to love trading jabs now on muni bonds with her cross-town rival Alexandra Lebenthal of Lebenthal & Co. (true muni bond experts).

Is Meredith Whitney just making these predictions at this point for publicity? She seems to love trading jabs now on muni bonds with her cross-town rival Alexandra Lebenthal of Lebenthal & Co. (true muni bond experts).

SAC

Mary Jo White was the top federal prosecutor in New York City during Bill Bratton’s first run as the Big Apple’s top cop, and she learned a few lessons from his “broken windows” theory: Clean a place up a little, and throw the fucking book at the street urchins who are messing things up with […]